Keynes believed that if the government increased spending and reduced taxes during an economic slump, then it would ________.
A. only further damage the economy.
B. have no impact on the economy.
C. hurt future generations.
D. help the economy recover more quickly.
Answer: D
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Use the following graph to answer the question below.
The price where marginal benefit equals marginal cost is
A. $1.60. B. $1.00. C. $2.90. D. $0.50.
Use the Slutsky equation to show that a Giffen good must be an inferior good, BUT an inferior good need not be a Giffen good
What will be an ideal response?
The shifting of trade to countries in a regional group at the expense of trade with countries not in the group is known as trade internalization.
a. true b. false
Industries in which firms ________ are likely to expand in the long-run.
A. break even B. have positive profits C. shut down in the short run D. suffer losses